/ 13 December 1996

SAB puts staff on beer war-footing

A secret memorandum reveals details of Project Natural, the latest weapon in the beer battle, reports Stefaans Brmmer

A LEAKED internal memorandum shows how brewing giant South African Breweries (SAB) went on a near-war footing – in a multi- million rand campaign dubbed “Project Natural” – which enforces a company line on its products in response to a perceived threat from competitor Namibia Breweries.

“We’d like to quench your thirst for knowledge,” SAB’s widely displayed Castle Lager advert says, followed by a florid exhortation about the beer’s “natural” qualities. But the memorandum gives a rare insight into the company’s efforts to ensure the consistency of this message to the outside world.

The memo, from SAB Beer Division marketing director Barry Smith to senior company officials, comes against the backdrop of a mini-war between SAB and Namibia Breweries over the “natural” qualities of their beers.

SAB, responding in part to the Namibia Breweries “No secrets, no additives, no hurry” advertising campaign, embarked earlier this year on Project Natural, which includes its own country-wide saturation campaign in print and electronic media – estimated by one advertising expert to cost up to R20-million.

Smith’s memorandum, dated November 5 and headed “Project Natural”, gives near- military instructions on how to communicate with the media and external shareholders – restricting media communications to the managing director, marketing director and public affairs manager, and in the case of external shareholders to the public affairs manager.

Public affairs manager Adrian Botha this week said in reply to Mail & Guardian inquiries that it was “quite normal for a company of the size and geographic spread of SAB to co-ordinate its efforts by setting up a project to achieve its ends” and that company communication with the media was in any case, on any issue, restricted to the MD, marketing director or public affairs manager. “It must be pointed out that this [the memorandum] is a standard type of communication within the company and contains nothing sinister or extraordinary.”

The memorandum was leaked to M&G by an SAB employee who said he believed the advertising campaign distorted the facts. “To say we are adding no chemicals is simply untrue. The fact is, they are adding chemicals, even if most of these chemicals occur naturally.”

The employee detailed some of the additives and ingredients used in the brewing process, most of which were confirmed by Botha this week. (See story alongside.)

Smith’s memo says: “A strict discipline will be imposed … in handling such queries. Questions will need to be clearly recorded and, thereafter, responded to in writing. Alternatively, it must be agreed beforehand that all articles arising from interviews with said spokesman must be vetoed [sic] before publication.”

The memo instructed every SAB region to appoint a co-ordinator for Project Natural (“suggested trade marketing manager”) and a technical executive (“eg brewing manager”) to ensure “a standard and consistent response”.

It also said: “A lexicon of words and phrases to be used (and not to be used) is being compiled by Public Affairs. This will be forwarded shortly to ensure consistency of written and oral communication.”

And in an indication of the origins of the campaign, Smith states: “It is imperative that we obtain affidavits confirming any action taken by a competitor denigrating our products.”

Botha said in his response: “As South Africa emerges from years of isolation and consumers are exposed to many new products, the company deems it important to reassure loyal South African beer drinkers that the brands they have enjoyed over the years are world class. In addition, the initiative is being used to address malicious rumours that have been circulating in certain sectors of the market.”

He said SAB became aware in 1994 of “totally false rumours in the market that the company was hurrying its brewing process” by adding harmful chemicals. “While Namibia Breweries might not have initiated the rumours, that company’s marketing efforts [the “No secrets, no additives, no hurry” campaign] have consciously or unconsciously compounded the problem.”

Botha said the Advertising Standards Authority ruled last month that the Namibia Breweries campaign was “disparaging and misleading” and ordered it withdrawn.

Botha would not give a figure for the amount spent on Project Natural, but said: “While the company’s investment in the project is not insignificant, it forms a tiny percentage of the overall marketing budget. Virtually the entire project spend has been dedicated to the celebration of the success of SAB’s beers at the recent Australian International Beer Awards.”